Running Head: FAITH INTEGRATION PROJECT ACCT 212 B15
ACCT 212 D15 Faith Integration Project
Tym Bunnell
Justin Bethel
Leslie Cudd
Corey Culler
Reid Cummings
Liberty University
September 23, 2013
Respectfully submitted to: Dr. Laura Baker
Abstract
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The prevention of fraud and erroneous accounting and business processes requires effective
supervision by business managers and the enforcement of a solid ethics policy from within the
company. Christian values and lessons learned from Scripture will equip Christian business
leaders with the tools necessary to implement and enforce God’s will through effective, and
efficient business practices based on integrity and honest dealings.
Implications for Managerial Accounting
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Managers bear the burden of ensuring the integrity of financial and asset accounting
procedures to reduce and hopefully prevent both intentional and inadvertent fraudulent
reporting. Fraudulent accounting can increase a business's costs which can cause improper mix,
poor decisions in price setting, and inaccurate or faulty evaluations of employees and systems
(Wild, Shaw, & Chiappetta, 2011). The Pentateuch provides extensive guidance and direction
for consideration in effective business ethics and is a solid start point for the development of
managerial processes such as managerial accounting (Gellis, Giladi, & Friedman, 2002). God
instructed the nation Israel directly to implement accurate accounting through accurate measures
and processes (Leviticus, 19:36).
Protecting a company, its assets, and its stakeholders from fraud and other problems requires
a solid base of business ethics, or "beliefs that distinguish right from wrong.[and] are accepted
standards of good and bad behavior" (Wild, Shaw, & Chiappetta, 2002, p. 736). By following
Biblical guidance to "do no wrong in judgment, in measurement of weight, or capacity"
(Leviticus 19:35 New International Version,) managers can reduce fraudulent report and
accounting procures and ensures that all employees maintain the standard set by the Lord by
being upheld in integrity which shows God's presence in them (Psalms 41:12).
Keeping honest weights and measures as specific in Leviticus included maintaining accurate
accounting records. According to Wild, Shaw, and Chiappetta (2002) internal control systems
can be put in place the will help insure the integrity of the accounting process by monitoring and
controlling business activities. The control systems include: urging adherence to company
procedures, promoting efficient operations, ensuring reliable accounting, and protecting assets
(Ibid, 736). The Institute of Management Accountants (IMA) has issued a code of ethics specific
to managerial accounting to assist in keeping accountants free from unethical situations by
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providing a vertical line of resolution by higher levels of managements help with unresolved
issues and provides a road map for resolving any accounting ethical conflicts (Ibid).
Urging Adherence to Company Policies
Urging adherence to company policies is imperative while dealing with managerial
accounting. If company policies are not followed, problems such as fraud and increased
company cost can easily arise (Wild, Shaw, & Chiappetta, 2002). An entire business can be
ruined by employees who have no regard for basic company policies. However, managers can
introduce an internal control system to make sure company policies are guarded and
followed.
To prevent fraud and other difficulties from arising in the workplace companies should
develop policies that require and enforce positive ethics in all accounting and business practices.
Christian may have a different set of beliefs or code of ethics because they are based in Scripture.
Paul teaches in the book of Romans, “Do not be conformed to this world, but be transformed by
the renewal of your mind, that by testing you may discern what is the will of God, what is good
and acceptable and perfect.” (Romans 12:2 New American Standard Bible). Identifying the
ethical choice can often times be very difficult. But, if one follows what scripture teaches it can
easy be found.
Promoting Efficient Operations
God promotes prosperity through business and as such has given us tools such as accounting
to succeed. The only way to succeed and fulfill God’s desire for prosperity is to manage the
scarce resources given to their fullest potential. Managerial accounting is a process by which
decision makers have accurate information they need to make sound decisions that control their
resources. “They [internal decision makers] also try to control activities and ensure their
effective and efficient implementation. Managerial accounting information helps these internal
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users make both planning and control decisions”. (Wild, 2011, p. 736) Managerial accounting
adds to the efficiency of a business by offering timely information on overall goals, budgets,
product evaluation performance monitoring and other planning and control areas. Without such
accurate information, a product line may be pursued that pulls resources away from a better
performing product, or perhaps an unnecessary manufacturing process is allowed to endure.
God wants Christians to be efficient in business and life so that we may get the most out of their
scarce resources. This is demonstrated through 2 Thessalonians in that: “For we hear that some
among you walk in idleness, not busy at work, but busybodies”. (3:6-12, English Standard
Version). Paul’s words show that not only is prosperity desired by God but so is efficiency. Not
making the effort to rid inefficiencies is lazy and as Proverbs says, “The soul of the sluggard
craves and gets nothing, while the soul of the diligent is richly supplied” (13:4, English Standard
Version). To be at work and not producing to the fullest is as much a waste in God’s eyes as lying
idle in worship of Him or the evangelism of his Word.
Ensuring Reliable Accounting
Ensuring reliable accounting a lesson discussed early in accounting courses. It is important
for corporate officers, managers, and employees to ensure accounting controls are enforced and
checked regularly. Lack of internal control will give opportunity, whether intentional or not, to
skew required reporting information that flows into company reports. This information is needed
not only by management in all levels of a corporation, but by stakeholders who rely on this
information to make key financial decisions regarding the future of the company. It is
imperative for a company to reflect an accurate financial position.
While the internal controls were part of the foundation of accounting training. Christians rely
on the Scripture as the foundation of Biblical history and education. The Bible had over 40
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authors and was written in several languages. Accuracy in translation was vital to the
preservation of Gods written Word which provides Christians with their history, God’s word,
and His instructions. One should consider the Ten Commandments as the code of ethics
provided to man by God.
Often information is interpreted differently by individuals who may interpret based on
personal assumptions. The Apostle Peter cautioned that “Knowing this first of all that no
prophecy of Scripture comes from someone's own interpretation. For no prophecy was ever
produced by the will of man, but men spoke from God as they were carried along by the Holy
Spirit” (Peter 1:20-21 New American Standard Bible). For the accuracy and reliability of
information the source and information gathering process is the key.
Protecting Assets
Protection of assets is a core component of managerial accounting, as the assets a company
owns is the life blood of its operations. Protecting these assets is the same as protecting the
company, and so this requires due diligence and astute vigilance to keep a company’s assets safe
and secure. The form of business that a company chooses to register as is an important part of
asset protection, as limited liability entities such as LLCs and corporations have a form of asset
protection built in. Further protection of assets usually involves a system of controls and checks
that prevent company assets from being used without permission and prevents and deters theft or
loss.
The Bible speaks to the protection of assets, and though it does not use the phrase asset
protection, the Bible alludes to instances of protecting property and self. Judging from verses
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such as Exodus 22:2-31 and Luke 22:362, it is permissible to defend yourself and your property,
but care must be taken. While it may not be good for business, compassion and forgiveness
should be a core tenet of Christian business philosophy. Sometimes there are things more
important than profit margins and the bottom line.
1“If a thief is caught breaking in at night and is struck a fatal blow, the defender is not guilty of bloodshed; 3 but if it
happens after sunrise, the defender is guilty of bloodshed. Anyone who steals must certainly make restitution, but if
they have nothing, they must be sold to pay for their theft” (Exodus 22:2-3 New International Version)
2 “He said to them, “But now if you have a purse, take it, and also a bag; and if you don’t have a sword, sell
your cloak and buy one.” (Luke, 22:36)
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Conclusion
The implementation of control systems based on ethical policies vetted by God’s instruction
will provide business leaders the means to better the practices of those within their company to
lead to more efficient and honest accounting practices. Lessons based on the teachings of God in
His written word will provide business managers with the tools they need to judge with accurate
weights and measures.
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References
Emerson, M. (2012). 12 Bible verses every small business owner needs. Huffington Post.
Retrieved September 12, 2013 from http://www.huffingtonpost.com/melinda-
emerson/small-business-owner-bible_b_1426541.html
Gellis, H., Giladi, K. & Friedman, H. (2002). Biblical and Talmudic Basics of Accounting Ethics.
The CPA Journal. Retrieved September 12, 2013 from
http://www.nysscpa.org/cpajournal/2002/0902/nv/nv4.htm
Wild, J., Shaw, K., & Chiappetta, B. Principles of Accounting II. (2011)
McGraw-Hill Companies, Inc. USA. Page 8, 74
